Balance sheets are financial statements used by businesses. Here we will describe the balance sheet for an individual or family. Your balance sheet is a snapshot of your assets, liabilities and capital at a particular point in time. It gives you a sense of what you own, what you owe, and what you have invested.
Assets include cash, marketable and non marketable securities, antiques and collectibles, real estate, cash value of life insurance, annuities, vehicles, prepaid expenses, and wages and other income receivable.
Liabilities and net worth
Long term liabilities include secured and unsecured installment loans, mortgage loans, credit card balances, and student loans. Current liabilities include unpaid bills and loans which are due to be paid off within the next year. Net worth is the differential between the assets and liabilities, and therefore assets will always be equal to liabilities and net worth.